Treasury Funding Crisis Hits 16 State Department

The National Treasury

The National Treasury has failed to release Sh9.5 billion in crucial funding to 16 key government departments, threatening essential public services across Kenya.

Immigration and Citizen Services stands among the hardest-hit departments, receiving no allocation for vital projects including passport processing services.

“Critical services at risk,” reported the Daily Nation, as the development budget faced a significant reduction from Sh459 billion to Sh351 billion.

The funding crisis has sparked concerns in Parliament, where legislators have accused the Treasury of deliberate obstruction. “MPs accuse Treasury of ‘sabotage’ over withheld Sh219bn for projects,” stated the Business Daily, highlighting growing tensions between the legislative and executive branches.

Meanwhile, public service delivery continues to deteriorate as departments operate without the necessary resources. The shortfall affects multiple sectors, raising questions about the government’s ability to maintain essential services.

In response to this crisis, Parliamentary committees have launched investigations into the Treasury’s handling of fund disbursement. The funding delay comes amid a broader cash crunch affecting various government operations.

This funding crisis follows a pattern of delayed disbursements, with the Business Daily reporting that “Treasury fails to disburse Sh153bn on cash crunch.”

The implications of this funding shortage extend beyond immediate service disruptions, threatening long-term development projects and public trust in government institutions.

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